December 24, 2008

Forex currency trading beginner – For had the stock declined to 190, you could have exercised the put and sold to the holder of your contract at 210.

(You would use the shares you held at 190 to satisfy your put contract to sell at 210.) You would simply have recouped your investment”at a cost of $350”but you would be $1,650 ahead of the man who had bought and endured the slide unprotected. Of course, the other alternative would be to shrug, consider the drop a loss on paper only, and wait however long it took for the stock to come back. But that is not the professional's way. He is usually in for the short swing. He needs his capital for new opportunities as they arise, day by day.

Forex currency trading beginner – For had the stock declined to 190, you could have exercised the put and sold to the holder of your contract at 210.

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